- Fresenius Medical Care AG & Co (NYSE:FMS) has agreed to merge its U.S. unit Fresenius Health Partners with medical services groups InterWell Health and Cricket Health to expand in the care of earlier stages of kidney disease.
- The new company, which will be fully consolidated by Fresenius Medical Care as the majority owner and operate under the InterWell Health brand, is valued at $2.4 billion.
- The merger brings together Fresenius Health Partners, InterWell Health's clinical care models, a strong network of 1,600 nephrologists, and Cricket Health's tech-enabled care model that utilizes the StageSmart platform.
- Related: Fresenius's Q4 Operating Income Hit By COVID-19 Related Headwinds, Targets Earnings Growth In FY22.
- The three-way merger would increase Fresenius Medical Care's total addressable market in the U.S. from around $50 billion to around $170 billion, the statement said.
- Financial terms were not disclosed. FMS expects the transaction could close in the second half of this year.
- Rice Powell, CEO of Fresenius Medical Care, said: "This effort is an important next step in executing Fresenius Medical Care's growth strategy 2025 to further expand along the renal care continuum."
- Price Action: FMS shares are down 2.36% at $32.72 during the market session on the last check Monday.
